Sula Vineyards, India’s largest wine producer, made its debut on the stock market on Thursday. On its IPO listing, Sula’s stock had a flat opening and slipped soon. At the time of writing this report, it went on to make a BSE intraday low of Rs 339 and dipped lower from its upper price band of Rs 357 per share.
Sula Vineyards is the market leader in India’s wine market across all four price segments (elite, premium, economy and popular) and also the market leader across all the wine variants, namely red, white and sparkling wines. Sula’s company’s business is broadly classified under two categories: wine production, the import of wines and spirits, and the distribution of wines and spirits and sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms.
The initial public offer of Sula Vineyards was subscribed 2.33 times during a three-day period (from December 12 to December 14. The Rs 960.35-crore initial share-sale received bids for 4,38,36,912 shares against 1,88,30,372 shares on offer, according to NSE data.
The category for Qualified Institutional Buyers (QIBs) got subscribed 4.13 times, Retail Individual Investors (RIIs) portion received 1.65 times subscription and non-institutional investors 1.51 times.
Sula Vineyards mentioned it raised Rs 288 crore from anchor investors.
The company distributes wines under a bouquet of popular brands, such as Sula (its flagship brand), RASA, Dindori, The Source, Satori, Madera & Dia.
Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.
Kotak Mahindra Capital Company Limited, CLSA India Private Limited and IIFL Securities were the managers to the offer.